Organizational Culture

Institutionalization: A Forerunner of Culture

Institutionalization
When an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality.

What Is Organizational Culture?

Organizational Culture
A common perception held by the organizations members; a system of shared meaning. Characteristics:
1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness

7. Stability

Do Organizations Have Uniform Cultures?

Dominant Culture

Expresses the core values that are shared by a majority of the organizations members.
Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.

Do Organizations Have Uniform Cultures? (contd)

Core Values The primary or dominant values that are accepted throughout the organization.

Strong Culture A culture in which the core values are intensely held and widely shared.

What Is Organizational Culture? (contd)

Culture Vs. Formalization
A strong culture increases behavioral consistency and can act as a substitute for formalization.

Organizational Culture Vs. National Culture

National culture has a greater impact on employees than does their organizations culture.
Nationals selected to work for foreign companies may be atypical of the local/native population.

What Do Cultures Do?

Cultures Functions:
1. Defines the boundary between one organization and others.
2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system. 5. Serves as a sense-making and control mechanism for fitting employees in the organization.

What Do Cultures Do?

Culture as a Liability:
1. Barrier to change. 2. Barrier to diversity 3. Barrier to acquisitions and mergers

How Culture Begins?

Founders hire and keep only employees who think and

feel the same way they do.

Founders indoctrinate and socialize these employees to

their way of thinking and feeling.

The founders own behavior acts as a role model that

encourages employees to identify with them and thereby

internalize their beliefs, values, and assumptions.

Keeping Culture Alive

Selection Concern with how well the candidates will fit into the organization. Provides information to candidates about the organization. Top Management Senior executives help establish behavioral norms that are adopted by the organization. Socialization The process that helps new employees adapt to the organizations culture.

Stages in the Socialization Process

Prearrival Stage The period of learning in the socialization process that occurs before a new employee joins the organization. Encounter Stage The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. Metamorphosis Stage

The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.

A Socialization Model

Entry Socialization Options

Formal versus Informal Individual versus Collective Fixed versus Variable

Serial versus Random

Investiture versus Divestiture

How Organization Cultures Form

How Employees Learn Culture

Stories

Rituals
Material Symbols Language

Creating An Ethical Organizational Culture

Characteristics of Organizations that Develop High Ethical Standards High tolerance for risk Low to moderate in aggressiveness Focus on means as well as outcomes Managerial Practices Promoting an Ethical Culture Being a visible role model. Communicating ethical expectations. Providing ethical training. Rewarding ethical acts and punishing unethical ones. Providing protective mechanisms.

Creating a Customer-Responsive Culture

Key Variables Shaping Customer-Responsive Cultures 1. The types of employees hired by the organization. 2. Low formalization: the freedom to meet customer service requirements. 3. Empowering employees with decision-making discretion to please the customer. 4. Good listening skills to understand customer messages. 5. Role clarity that allows service employees to act as boundary spanners. 6. Employees who engage in organizational citizenship behaviors.

Creating a Customer-Responsive Culture (contd)

Managerial Actions :
Select new employees with personality and attitudes consistent with high service orientation. Train and socialize current employees to be more customer focused. Change organizational structure to give employees more control.

Empower employees to make decision about their jobs.

Creating a Customer-Responsive Culture (contd)

Managerial Actions (contd) : Lead by conveying a customer-focused vision and demonstrating commitment to customers. Conduct performance appraisals based on customerfocused employee behaviors. Provide ongoing recognition for employees who make special efforts to please customers.

Spirituality and Organizational Culture

Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community.

Characteristics:
Strong sense of purpose Focus on individual development Trust and openness Employee empowerment Toleration of employee expression

Reasons for the Growing Interest in Spirituality

As a counterbalance to the pressures and stress of a
turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection.

Formalized religion hasnt worked for many people. Job demands have made the workplace dominant in many

The desire to integrate personal life values with ones

professional life.

peoples lives, yet they continue to question the meaning of work.

An increasing number of people are finding that the pursuit

of more material acquisitions leaves them unfulfilled.

How Organizational Cultures Have an Impact on Performance and Satisfaction